If someone tells you they know how to get us out of this financial crisis slowly walk away from that person.  Treasury Secretary Henry Paulson, Federal Reserve chairman Ben Bernanke and SEC chairman Chris Cox are pulling out all the stops but government alone cannot restore consumer confidence or convince the banks to start lending.

  Our financial problems started a worldwide financial crisis with each country having their own plan without coordinating a unified plan of action with their neighbors.  Since we aren't spending, we have lowered our trade deficit. The British has announced a plan to provide $500 billion of capital to their banks with guarantees for all their financial transactions.  Secretary Paulsen has hinted that he is open to that plan....Don't ask me where he is going to get the money.

Since Wall Street is not four men making decisions in a back room, the bailout was not intended for them, but if done right, they will prosper.  The $700 bailout is supposed to be a long-range strategy that will not work unless consumer confidence is restored. The economy needs to fall, rise, and stabilize without government intervention before the housing market will raise enough to even think about making the gain on the sale of the questionable mortgages. 

Now the financial geniuses are telling us not to watch the DOW, because it's just a snapshot of how the economy is performing. They are telling us that this is a credit crisis, so if you are buying a new car don't expect to get a good deal, and watch those late fees on your credit cards.

Looks like the market will close on a positive,perhaps it's because of an upcoming G7 Summit....Nope,in about 15 minutes it fell to -128.00

This morning the president said “anxiety can feed anxiety,”…Take heed.

That's what Cindy McCain said while being part this triple team to attack Barack Obama for being unworthy to be the next president of the United States.  Cindy McCain went onto say it sent a chill through her body when Barack Obama voted against funding the troops. What an exaggeration, John McCain voted against that same bill because it had “timelines” in it, Barack Obama voted against that second version because it did not have “timelines.”How long has she been a senator's wife?

Cindy McCain is suffering from selective memory if she does not remember the events of the 2000 South Carolina primary that derailed the Straight Talk Express.  This Democrat remembers being angered with the tactics used by Karl Rove  via a phony poll where voters were asked” would you be more or less likely to vote for John McCain……” if you knew he had fathered an illegitimate black child?”  John and Cindy McCain campaigned with their dark skinned daughter Bridget they had adopted from Bangladesh.

Speaking of history can anyone remember if Tipper Gore, Laura Bush, Hillary Clinton, or   Teresa Heinz Kerry ever attacked the character of their husband's opponent in a campaign speech?

The McCain campaign is doubling down (McCain & Palin) on using the William Ayres connection to somehow prove that Barack Obama is not trustworthy.  Fox news aired a one-hour special hosted by (whom else) Sean Hannity. Andy Martin (Internet journalist) the anti-Semitic extremist was Sean's source. That did for me.

  Recently the McCain camp has gone 100% negative in their ads compared to 34% of Barack Obama's ads, according to the Wisconsin advertising Project at the University of Wisconsin.

It's too bad because I once admired the senator, because he once called the very same tactics he is using today, despicable.

Overall it was a boring debate except for John McCain’s YouTube moment when the senator ,referring to a Bush/Cheney energy bill that was loaded with goodies for the oil companies,  turned looked at Barack Obama ,pointed at him and said “You know who voted for it…”That one.”I thought for a moment we were back in the 50s.

Throughout the night McCain kept doing his impersonation of a stand-up comic, even thou all his jokes fell flat. At one time he didn’t realize Obama was reeling him in for the kill. Barack Obama led him into a trap by saying “John McCain keeps implying I am green behind the ears, and he is the wise one.” …John McCain stepped up to say “Thank you” only to hear Barack Obama remind the audience it was this wise, experienced and supposedly mature leader that sang a chorus of “Bomb Iran” and called for the annihilation of North Korea.

In my opinion, John McCain did not sell his health care plan as well as Barack Obama but neither candidate had a proposal to help solve our faltering economy right now.

John McCain rolled out his brand new $300 billion plan to buy the riskier mortgages and renegotiate the payments with homeowners; keeping them in their homes. This will lose his conservative base…Right wing radio lit up this morning with “What was McCain thinking?”

Bill Ayers did not come up during the debate...I guess what said on the campaign trail ,stays on the campaign trail.

McCain goal to deem Obama risky or unworthy did not work,but Obama's goal of tying McCain to George Bush seems to be working,

 CNN and CBS polls had Obama winning by a good margin.

Barack Obama and John McCain will take their questions from the audience in a town hall format.  We have been told this type of debate will favor John McCain….On the other hand, the polls being where they are, losing the first debate with Obama and losing the VP debate, McCain has to exceed all expectations.

  Economics

1) Mr. McCain's, yesterday's Wall Street Journal stated that cuts($1.2 trillion) will have to be made on Medicare and Medicaid to pay for your health care plan.  Elaborate

2) Candidates, can you name the people you have in mind for the Treasury Secretary, SEC chairman and Federal Reserve chairman?

3) Do you have a plan to stop the nine straight months of job losses?

4) Given the instability of the market; is the privatization of Social Security off the table?

5) Name all reforms and regulations that you think is needed for Wall Street. Be specific.

Foreign policy

1)What do you think of a policy that would have the United States buy all the poppy grown in Afghanistan and use it for  medical purposes. We could steer the poppy farmers back to `growing grapes,

2) A British commander said we cannot defeat the Taliban with Western forces… If you disagree, tell us why.

3) Should the current financial crisis influence our decisions in Iraq and Afghanistan? If your answer is no, explain....Should all costs go back into the budget?

4)Mr.McCain ,you say you know to bring Osama Bin Laden to justice...Why can't you tell the pentagon your plan or do you have to get elected first?

5)How many troops will you leave in Iraq?...Will they be used to protect private industries?

Social

1) Should we repeal “don't ask don't tell?”

2)Should we repeal Roe v Wade?

I am sure you add can a few I didn't think of.

During her recent campaign speeches Sarah Palin has been going around questioning the character of Barack Obama using an article from the boogieman New York Times as its source.  She always forgets to mention that both the Washington Post in April and the same  New York Times reveals that Obama and Ayers have only a casual association.  William Ayers donated $200 to Barack Obama’s state senatorial campaign and they served on an educational charity board. They both live in Chicago's Hyde Park.

I know why the McCain camp is going this route, it's the polls. Greg Strimple, one of the McCain's top advisers said “We are looking forward to turning a page on this financial crisis. “Another McCain top aide said this about the recent strategy, “It's dangerous road, but we have no choice; if we keep talking about the economic crisis were going to lose.”

John McCain made several blunders last week, He started by suspending his campaign ( not really ), called for the firing of SEC Chairman Christopher Cox, called for a Wall Street commission, and the off and on  stance on his debate participation. John McCain keep railing on the pork barrel bills yet signed the recent legislation without hesitation.  These actions show John McCain to be a riverboat gambler in a crisis,

 Instead of gathering all his financial buddies together for a coherent plan to bail this country out of its financial  mess; he will pull out the old Lee Atwater -Karl Rove culture war playbook .The McCain campaign will link with Rush Limbaugh,Sean Hannity and the rest of the right-wing cronies to parrot a message of “He is not one of us”. William Ayers, Jeremiah Wright and Tony Rezko will be dusted off and used d for a 30-day assault. The McCain campaign knows that the mainstream media will use clips of WWF style of politics (true or not) for ratings.

 Should the Obama camp fight back? You betcha *wink*  they should release the clip of  the witch doctor Thomas Muthee baptizing Sarah Palin,or use the same guilt by association tactic by bringing up Charles Keating, Sunday on Meet the Press ,Paul Begala said “McCain sat on a board of the  U.S .Council for World Freedom. It was chaired by John Singlaub who wound up involved in the Iran-Contra scandal; it was a ultra-conservative right wing group “This group became a gathering place, a forum, point of contact for extremist racist and anti-Semites.

 Bring back James Carville and Paul Begala, to fight fire with fire, or stay on a message of the kitchen tables issues the middle-calls wants to hear about.

I suspect Barack Obama will contract the 527s to counter the culture war tactics and stay on message.

As expected the Senate overwhelmingly passed the unpopular bailout (rescue) plan 74-25. Getting this bill passed in the Senate was never in doubt even thou the Senators received, telephone calls from their constituents voicing their anger by a two to one ratio. The senate thought that doing nothing about the economic crisis was never an option. The Senate added incentives (sweeteners or pork) to entice House members.  They only need to change the minds of 12 House members,

The Senate added a clause that would increase the FDIC insurance from $100,000-$250,000..This measure will prevent bank overrun, keeping customers from withdrawing  an amount over $100,000, only to deposit it  across street in another back..  They added 150 million dollars in tax breaks for individuals and businesses. Did they overplay their hand?

Today House will look at this bill that has gone from being only three pages to this new version of 451 pages.  They are expected to vote on this version Friday.

Blue dog Democrats (conservatives) will oppose the new bill because of the adage of the tax cuts that are not paid for.  They think this new version will increase the current $500 billion deficit.   House Republicans should find this new proposal(tax cuts) more to their liking.  Remember only 12 new votes are needed.

A lot of people are angry, that it has come down to this (me included) ,but doing nothing is not an option.  Hopes, ideology, and playing the blame game will not loosen the credit market which is vital to our economy.  Wachovia Bank has already limited their college loans to $9.3 billion.  This will impact over 1000 colleges.  Car sales were down 12% across the country and the McDonald's corporation is not lending to their franchise owners. This is not about the fat cats on Wall Street; it's all about consumer confidence.  Our inaction has already shaken up the European markets.  If Congress does not pass this imperfect legislation; we will see panic, huge layoffs and a start to a deep depression. We have stalled long enough.

No doubt next president will face a faltering economy; therefore I think it would be appropriate to ask the candidates to name their possible Treasury Secretary, Fed and SEC chairpersons..  Perhaps that can be a debate question..

Speaking of Debates

  I don't think anything drastic will happen tonight in the Sarah Palin- Joe Biden debate; both camps will come away declaring victory.  Since I have seen Joe Biden debate many times, whatever he says or does would not surprise me.  On the other hand, I will look for clarity in Sarah Palin's answers, because in a sit-down debate format, nuance can get you through. Sarah Palin is a master in deflections; that's the reason she does poorly in interviews, an interviewer can ask a follow-up question. It will be fun to watch.

President George W. Bush went out again this morning with another plea to Congress to pass this$700 billion rescue plan. He looked like a beaten man without any salesmanship skills. Perhaps if attacking Iran was on the agenda he would have put in more effort.  He could've brought out a simple chart; never mind he would have to explain it.

Today, House Republicans are anxious to vote  for the rescue bill if added provisions are included.

(1)They want a mark-to- market amendment…. This is a CPA term meaning, inputting actual value to the assets like futures market.

(2) The GOP wants the FDIC guarantee be increased from $100,000-$250,000 on you deposits.  This is a Barack Obama proposal (John McCain gave him credit to this morning) on MSNBC's “Good morning Joe.” 

The Liberal Democrats that did not vote for this bill wanted oversight with more teeth to punish the corrupt CEOs ,and bankruptcy protection for the taxpayers involved in this plan.

Why wasn't this compromised?

The House Republicans I saw on TV last night and this morning pretty much guarantee a bill will be passed Thursday.  They saw the light yesterday after the market's 777 point drop, plus the $1.2 trillion capital value loss have brought them back to reality. The House Republicans are even admitting that it was never about Speaker Pelosi hurting their feelings with her partisan rhetoric yesterday.

House Speaker Nancy Pelosi brought in two thirds of her people to the table, but minority leader John Boehner could not even bring one third of his is on board.  If it  was giving tax breaks for tobacco companies many Republican lawbreakers would be in the hospital this morning with broken arms.

When Barney Frank is the go to guy on this rescue plan we are in a lot of trouble,because even thou he did some good work on this rescue plan ;he is not the most bipartisan individual in congress.

The pundits keep asking where is Barack Obama and John McCain on this issue, why aren't they in Washington taking charge? They are campaigning where they belong, the Democrats do not want sole ownership of this shaky plan 'so Obama is not needed for extra votes. On the other hand John McCain is not well liked by the House Republicans so he cannot twist any arms.

I am not blaming the House Republicans for the failure of this bill, just their leadership.

 The lack of leadership is the number one reason yesterday's rescue plan failed.

(1) Initially the Treasury Secretary tried to cram down Congress's throat, a bill that said "Give me $700 billion and don't question my motives and trust me,"

(2) Because of Bush's poll numbers and lame-duck status; the president of the United States does not have any clout at all.

(3) House minority could only get 65 votes of the 100 he promised Nancy Pelosi....In the end he only needed to convince 12 more lawmakers.

This bill cannot wait until January 20, 2009.

Timeout is what the Houston Rockets call when the Spurs get a 10 point lead, but to suspend your campaign because your presence is needed in Washington? I guess a political speech at the Clinton Global Initiative meeting this morning does not count.

Congress and  the Bush Administration have been working for five days on a bipartisan consensus for that $700 billion rescue plan. I wonder how those lawmakers feel, now that John McCain has injected presidential politics into the mix.  John McCain is not on any committee addressing this problem; he hasn’t even cast a vote since April of this year.  The New York Times is reporting that this bill will be done shortly, probably before John McCain goes to Washington..The Democratic House leadership is on board, but as of yesterday, getting 100 Republicans to vote for the measure will be difficult. Perhaps John McCain is forced to go to Washington to act as a whip.  Personally, I think this is just another of John McCain’s stunts he uses when he gets behind.

The John McCain campaign has used many stunts throughout this campaign.  Remember that gasoline tax holiday he proposed, knowing full well that the measure would never pass, but the plan had  the potential to fool a few voters.  Then Barack Obama started pulling ahead during the convention, forcing John McCain to throw a Hail Mary pass by picking Sarah Palin to be his running mate.  This was by all accounts a brilliant move to energize his campaign..The two-week shelf life of a VP pick ended, then the economic crisis hit.  Time for another political stunt.

John McCain started a week by saying that the economy was fundamentally sound,  then being against bailouts before supporting them, then he reverted back to be in a regulator when he saw the country wanted regulation and oversight.  His biggest mistake was calling for the firing of FCC Chairman Christopher Cox.  A few hours later his campaign told him that the Constitution would not allow the president to fire the SEC Chairman. John McCain came out and said Mr. Cox was a good man. Even thou Barack Obama did not provide any solutions to the current economic crisis he did not go into a panic mode.

  This morning Lindsey Graham told CNN that John McCain is proposing that Friday’s debate should take the place of the VIP debate scheduled for October 2th…. Was this the plan all along since Sarah Palin is not ready? If Barack Obama was needed in Washington; Joe Biden could step in and do both debates and still go on the campaign trail.

The administration via Treasury Secretary Henry Paulson and Fed Chairman Ben Barnake gave Congress a three-page ultimatum to pass this bill or the financial markets wouldl die. For extra pressure the administration sent Dick (Darth Vader) Cheney to twist some Republican arms. The Republicans basically said “thanks, but no thanks.”

Senate Banking Chairman Christopher Dodd, now vows that the administration will not get the clean bill ,it desires. Whats is a clean bill? Basically it is one without amendments attached,like a garage sale sticker “as is.”Section 8 of this three-page ultimatum stated:

1)      The Secretary had sole authority to purchase.

2)      The Secretary could purchase as he deemed fit.

3)      The Secretary could appoint the employees.

4)      The Secretary had the authority to enter into contracts.

5)      The secretary could designate financial institutions (such as Goldman Sachs) to act as agents of the government.

This disclaimer caught my eye.

Decisions by the Secretary pursuant to authority of this act are nonrenewable and committed to any agency decision and may not be reviewed by any court of law or any administration agency…. Where do I sign?

After hours of watching our nation’s financial gurus I’ve come to the conclusion that the bailout is not such a bad deal because the secretary will not get retroactive immunity, and the paper the government will buy is not all that bad.

  Let me explain. 80%t of the mortgages are good, 10% workable, and 10% are just junk.  The 2005 California mortgages are probably worth $.30 on the dollar and the Florida mortgages, about $.50 on the dollar. Right now the free market cannot afford at risk it’s like catching a falling knife blade. Uncle Sam is the only option.

 I read Ron Paul’s no-bailout proposal of just cutting taxes and spending. No one is buying that anymore, this does not solve the problem of several banks failing,the falling stock market, or unemployment. We’re not going back on the gold standard; get over it.

This problem is not the fault of the 10% who will default on their mortgages or else the FBI would not be investigating 26 Wall Street firms.  Loan Sharks manage to stay in business by imposing high interest rates. They use the reserve for the defaults.AIG only had three or four cents in reserve for every potential default.

I hope Wall Street, Washington, and Main Street learns that old adage “No such thing as a free lunch.”

The last time President Bush said “Trust me we must act now” we entered into our worst foreign-policy ever.  Today Secretary Paulson is asking Congress for a clean $700 million bailout or the economy will collapse tomorrow.

This weekend it seem like all the congressmen were scared and ready to fork over $700 billion except for Ron Paul,, but most seem to had a good night sleep, because  now many want to add their own amendments to the bill.

This crisis pretty much shut the mouths of the free marketers. The privatization of Social Security is pretty much off the table. Tax-cuts for the wealthy or middle-class are not a reality. Today’s free marketers wanted free rein when they were making profits, but they want socialism when it comes to losses. Ronald Reagan’s slogan “Government is not solution, it is the problem” has died, these bail-outs have called for a government solution. I’m just waiting for someone to tell me universal health care is socialist….So

Right now the Federal Reserve is unable and buy up all the treasury notes in order to drive interest rates down, because the interest rates are nearly at zero.  Unless Congress acts; the banks will not be able to loan out money causing many corporations to lay off their employees.

Some good has already come from this crisis. The mortgage interest rates have come down since the federal government took over Fannie Mae and Freddie Mac; hopefully we get good enforceable regulations to boot. The creation of another government agency to buy up all the bad loans looks like a solution everyone is looking at.  Bailouts have produced good results in the past such as Chrysler, Mexico, and Lockheed.

A little conspiracy is floating out there: It seems that the conservative Republicans wanted a crisis like this with a government bailout for Wall Street leaving no money for entitlements. As Speaker of the House, Newt Gingrich told a Republican audience that the party was going to "let Medicare whither on the vine. ...I doubt that the GOP could be that creative.

We cannot fix this problem with a Herbert Hoover solution (the fundamentals of our economy are sound) mentality.